Estate planning is the process of developing a strategy for the distribution of your property after your death, so that your property goes to the persons you want to benefit, in a way that minimizes or avoids estate taxes.
We specialize in helping you accomplish this important life goal.
Anyone who owns enough property to be subject to federal estate taxes. For 2004, that means anyone with a net estate valued at more than $1.5 million.
To see if you are over the $1.5 million exemption amount, you should add up the value of all your property and assets. This generally includes your primary residence, any other real estate you may own, bank accounts, brokerage accounts, stocks, bonds, pension accounts, 401(k) plans, IRAs, any interest you own in a family business, automobiles, boats, valuable art objects, jewelry, plus the benefit payable under any life insurance policies on your life, less your outstanding debts.
It's risky to assume that you can ignore estate tax if you have an estate that's close to the current limit. We can help you establish a flexible plan to avoid estate tax that will be there if you need it, if the value of your estate grows over the next few years.
The rates are quite high. For 2004, the rates begin at 41% and go up to 48%.
This would depend
on the particulars of your estate, but here are some estimates, based on the
rates that would apply to persons dying this year (in 2004):
Value of Estate |
Amount of Estate Tax |
|---|---|
|
$ 1,700,000 |
$ 90,000 |
|
$ 2,000,000 |
$ 225,000 |
|
$ 2,500,000 |
$ 465,000 |
|
$ 3,000,000 |
$ 705,000 |
Yes. We can help you establish a plan that in most cases will avoid or substantially reduce your estate tax.
For example, many married couples with combined estates valued at up to $3 million may be able to avoid estate tax altogether. And we can show most clients how to substantially reduce their estate taxes.
We use several different legal strategies to help you avoid estate tax, depending on your situation. These strategies include:
• Credit
Shelter or "Bypass" Trusts
• Disclaimer Trusts
• Irrevocable Life Insurance Trusts
• Charitable Lead Trusts
• Charitable Remainder Trusts
• Tax-Free Lifetime Gifts
Absolutely not. We work with many clients in their 30s and 40s. It is wise to plan ahead to protect your family, and not lose 41% or more of your estate to the I.R.S.
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